Answer: Monthly profits can vary widely based on the location, size, and operational efficiency of the laundromat. On average, smaller laundromats might earn between $1,500 to $5,000 in profit per month, while larger, well-established ones in prime locations might see profits of $10,000 to $30,000 or more per month.
Typically, see an ROI return on investment) of between 25-30% a year. In fact laundromats often outperform other investment avenues like real estate and the financial sector, which is why they're such a popular business investment, particularly with first time business owners.
The cost of equipment required to start a laundromat varies from around $20K to as much as $500K or more. Initial startup costs can be quite significant for a seemingly 'set-and-forget' kind of operation. However, the lack of required labor once a startup is complete can outweigh the cost of starting a laundromat.
On average, a small to medium-sized laundry shop can earn between Php 30,000 to Php 100,000 per month in gross revenue, depending on the number of customers and pricing per kilogram of laundry. Costs typically include an initial investment of Php 300,000 to Php 600,000 for equipment, shop renovation, and permits.
We talked to the Laundromat Millionaire, Dave Menz, who owns four laundromats and makes nearly $2 million annually. He even helps other business owners navigate the industry to get more customers, become a full-service laundromat, and outshine absentee owners.
Laundromats can be highly profitable, recession-resistant, and flexible businesses, making them highly attractive for entrepreneurs. However, as with any business investment, there are risks to owning a laundromat which potential investors should carefully consider before diving in.
Understanding laundromat value
U.S. Laundromats post impressive numbers with a 95% average success rate and 20 - 35% profit margins. But whether or not your laundromat can meet (or exceed) these industry standards depends on some important factors.
On a typical scale, launching a laundromat will set you back anywhere from $200,000 to $500,000. Your financial footprint hinges on whether you're breathing new life into an existing establishment or embarking on a ground-up venture, coupled with the prevailing real estate climate in your locale.
Running a Laundromat is simple, but creating or maintaining a successful laundromat takes hard work. An owner does not need to be in the laundromat every day, but they must understand their customers, equipment and competition. For coin stores, this will generally take place twice weekly.
It's easy to understand why: Laundromats are a stable, recession-resistant business that can generate passive income with a strong return on investment. But how much does it cost to open a laundromat? Opening a laundromat typically requires an initial investment of $200,000 to $500,000, plus ongoing expenses.
Entrepreneurs normally spend between $100K and $1 million to start a new laundromat or buy a laundry business for sale. Dave suggests that you should normally spend between two and five times revenue, but that you should base your business valuation on what it's worth to you.
Laundry Services: Offering customers additional laundry services is a common method for laundromats to gain additional revenue. Wash and fold, delivery, ironing, and dry cleaning are a few examples of laundry services that can help attract new customers and increase engagement among existing customers.
Revenue per Laundromat: The average laundromat generates about $150,000 in revenue per year. Profit Margin: The average profit margin for laundromats is around 20-35%. Cash Flow: Coin laundries generate cash flow between $15,000 and $300,000 per year.
A great laundromat location is on a main roadway, highly visible, and has plenty of parking with easy access. Also take note of the surrounding businesses and what type of clientele they draw in. Grocery, convenience, auto parts, and check cashing stores make excellent neighbors for laundromats.
For most laundromat owners (and most entrepreneurs in general), an LLC is the best choice. That's because you'll have fewer regulatory requirements than S Corps or C Corps, but you'll be able to keep your personal assets separate from your business assets — something you couldn't do with a sole proprietorship.
Laundromats are a stable investment, offering a 95 percent business success rate. That's especially impressive when you compare laundromats to restaurants at 20% or retail stores at 47% after four years in business.
A coin-operated laundromat can be a profitable business, but there's also a high risk of it attracting thieves. You'll also need to keep cash on hand to provide customers with change for the washers and dryers.
Answer: Monthly profits can vary widely based on the location, size, and operational efficiency of the laundromat. On average, smaller laundromats might earn between $1,500 to $5,000 in profit per month, while larger, well-established ones in prime locations might see profits of $10,000 to $30,000 or more per month.